Jump to content
House Price Crash Forum

Greece May Need To Roll Over Eu Loan For 6 Years, Jpmorgan Says

Recommended Posts


Greece may need to extend a 110- billion-euro ($140 billion) bailout from the European Union and the International Monetary Fund by an extra three to six years to avoid a default on its debt, JPMorgan Chase & Co said.

“I don’t think they have a choice, really, given their deficit is so large,” said Pavan Wadhwa, head of European interest-rate strategy at JPMorgan in London. “Either other countries roll over the loans, effectively forgiving debt, or Greece restructures its debt and the market starts to freeze up again. They will need more help after the package expires if they were to avoid an outright default.”

The IMF-EU plan, announced in May, is planned to end in 2012. Investors have dumped Greek bonds after the government announced last year a budget shortfall of 13.6 percent of gross domestic product, the second-highest level in the EU. Greece plans to cut its deficit to 8.1 percent of gross domestic product this year and 7.6 percent in 2011.

Greek 10-year bonds rose for the first time in five days today, pushing the yield down 11 basis points to 11.70 percent.

The nation won’t restructure its debt and will stick to austerity measures it pledged as part of the bailout, Petros Christodoulou, head of the nation’s debt management agency, said earlier today in London.

‘Very Supportive’

“No one is even contemplating or thinking about” debt restructuring, Christodoulou told Andrea Catherwood on Bloomberg Television’s “The Pulse” program. “The general public is very supportive of our measures.”

Still it's contained, with Greece it appears to be a pretend and deny.

How long can they keep this charade up for?

Although I suppose if the ECB start lending in secret to the Greeks default can be avoided for quite a long time.

Link to post
Share on other sites

Yes, clearly we can just roll over every debt and then just carry on borrowing more money. It's freshly printed after all.

And when we run out we'll just borrow some more. And then some more after that.

Luckily none of it ever has to actually be repaid. It's a great system.

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 418 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.